Correlation Between Hangzhou Pinming and CITIC Securities
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By analyzing existing cross correlation between Hangzhou Pinming Software and CITIC Securities Co, you can compare the effects of market volatilities on Hangzhou Pinming and CITIC Securities and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hangzhou Pinming with a short position of CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and CITIC Securities.
Diversification Opportunities for Hangzhou Pinming and CITIC Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and CITIC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities and Hangzhou Pinming is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hangzhou Pinming Software are associated (or correlated) with CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and CITIC Securities go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and CITIC Securities
Assuming the 90 days trading horizon Hangzhou Pinming is expected to generate 1.72 times less return on investment than CITIC Securities. In addition to that, Hangzhou Pinming is 1.17 times more volatile than CITIC Securities Co. It trades about 0.06 of its total potential returns per unit of risk. CITIC Securities Co is currently generating about 0.13 per unit of volatility. If you would invest 2,746 in CITIC Securities Co on August 31, 2024 and sell it today you would earn a total of 241.00 from holding CITIC Securities Co or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. CITIC Securities Co
Performance |
| Timeline |
| Hangzhou Pinming Software |
| CITIC Securities |
Hangzhou Pinming and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and CITIC Securities
The main advantage of trading using opposite Hangzhou Pinming and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, CITIC Securities can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Hangzhou Pinming vs. Kweichow Moutai Co | Hangzhou Pinming vs. NAURA Technology Group | Hangzhou Pinming vs. APT Medical | Hangzhou Pinming vs. Contemporary Amperex Technology |
| CITIC Securities vs. Hangzhou Pinming Software | CITIC Securities vs. Ciwen Media Co | CITIC Securities vs. Sportsoul Co Ltd | CITIC Securities vs. Focus Media Information |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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